Cold storage companies provide temperature-controlled facilities for storing perishable goods like food, pharmaceuticals, and chemicals. They offer a range of refrigeration solutions, from conventional cold rooms to specialized environments like blast freezing. These companies ensure product integrity, compliance with safety standards, and efficient logistics, serving diverse industries worldwide.
The cold storage market, where temperatures plummet and freshness reigns supreme, is a bustling battlefield where players of all sizes vie for control of perishable products and profitable returns. From towering warehouses packed with produce to specialized facilities for pharmaceuticals, the competition is fierce, demanding innovative strategies and a keen understanding of the factors influencing market share. Let's delve into this cool zone and explore the strategies, market forces, and recent developments shaping its frosty future.
Strategies Adopted: Keeping it Cool and Competitive
Factors that Drive the Market Chills:
Key Players:
Recent Developments:
October 2023: Americold Logistics launches a new line of solar-powered cold storage facilities, catering to the growing demand for renewable energy solutions.
November 2023: Burris Logistics partners with a robotics company to implement automated inventory management systems in its facilities, aiming to boost efficiency and reduce labor costs.
December 2023: Agro Merchants Group invests in a new facility dedicated to the cold storage of pharmaceuticals, capitalizing on the expanding healthcare sector.
January 2024: Cloverleaf Cold Storage expands its network into Southeast Asia, targeting the region's booming food and beverage market with its cost-effective solutions.
Cold Storage Market Size was valued at USD 125.9 Billion in 2022. The Cold Storage industry is projected to grow from USD 143.5 Billion in 2023 to USD 409.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.00% during the forecast period (2024 - 2032). Increasing consumer demand for perishable goods and international food trade expansion as a result of trade economic liberalisation are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for cold storage is being driven by the increasing consumer awareness about decreasing food waste. Food waste is a serious issue all around the world. The majority of food waste is caused by a lack of suitable storage facilities. Furthermore, about 700 million people ly do not have enough food to consume. Perishable goods typically transit through the supply chain at varying temperatures, which can result in food spoilage and waste. The Chinese government is focused on measures to reduce food waste and increase the shelf life of perishable foods to address this issue. The population is predicted to rise fast, increasing demand for food and increasing emphasis on decreasing food waste. Because of population expansion and excessive food waste, there is a need for better storage worldwide; storage will contribute in addressing the problem of food insecurity by providing a stable environment for food goods across the supply chain. Thus, rising awareness of the importance of decreasing food waste would increase demand for storage facilities, propelling the growth of the market under consideration over the forecast period.
In addition, the utilisation of fuel cell-based technology can assist warehouse managers in saving valuable space in warehouses that is often occupied by battery charging stations and batteries. For example, when compared to traditional fuel-based and battery-powered infrastructure, fuel cell-based infrastructure takes up more than 60% less space. A forklift battery replacement takes approximately 10-20 minutes, but hydrogen refuelling in a fuel cell-based forklift takes approximately five minutes. As a result, such trends will have a positive impact on the storage market's growth over the forecast period.
Rising perishables are projected to drive the expansion of the cold storage industry in the future. Perishable products are those that decay quickly and have a short shelf life, such as fruits and vegetables, dairy products, medications, and others. The expanding perishables trade forces the cold storage business to supply higher quality items to their clients. For instance, According to a report issued in 2021 by the Food and Agricultural Organisation of the United Nations, worldwide milk production reached 906 million tonnes in 2020, up 0.2% from 2019. Another article published by the Food and Agriculture Organisation of the United Nations and the Organisation for Economic Cooperation and Development, an intergovernmental organisation with 38 member countries, stated that total meat production in 2020 is expected to be around 134 megatons, 1.2% higher than in 2019. As a result, an increase in perishables trade will raise demand for cold storage.
The Cold Storage Market segmentation, based on type includes refrigerated warehouse and refrigerated transport. In 2022, the refrigerated warehouse segment dominated the market. A refrigerated warehouse is used to store commodities that can only be held at specified temperatures to keep them fresh. Refrigerated storage reduces sprouting, rotting, and insect damage.
Figure1: Cold Storage Market, by Type, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The Cold Storage Market segmentation, based on temperature type, includes frozen and chilled. In 2022, the frozen segment led the market, accounting for around 77.3% of total worldwide sales. Rising consumption of frozen foods in emerging nations such as India and China is particularly propelling the frozen food segment. This segment's warehouses keep their storage temperatures between -10 and -20°F. They are used to preserve frozen vegetables, fruit, fish, meat, seafood, and other things.
The Cold Storage Market segmentation, based on application, includes dairy and frozen desserts, fish, meat and seafood products, bakery and confectionery products, fruit & vegetables and others. The fish, meat and seafood segment held largest market share in 2022 and will continue to expand. The rising emphasis on health and nutrition in the food and beverage business has led to the recent increase in demand for frozen beef. When compared to freshly cut meat, many urban consumers prefer frozen processed meat since it is easier to prepare and saves time. Beef, hog, and mutton are all popular frozen meats. As a result, rising demand for frozen meat and seafood is predicted to enhance storage adoption, boosting market growth through the meat and seafood segment throughout the projection period.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Cold Storage Market area will dominate this market, owing to the strengthening of the network of warehouses and increased investments in the development of the logistics infrastructure. These would also be important elements in driving demand for the cold chain.
Figure2: COLD STORAGE MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Cold Storage Market accounts for the second-largest market share due to the rising investments in the development of the logistics infrastructure. Further, the German Cold Storage Market held the largest market share, and the UK Cold Storage Market was the fastest growing market in the European region
The Asia-Pacific Cold Storage Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the extensive presence of both food and healthcare product suppliers and consumers. Moreover, China’s Cold Storage Market held the largest market share, and the Indian Cold Storage Market was the fastest growing market in the Asia-Pacific region.
Leading cold storage reit are investing heavily in research and development in order to expand their product lines, which will help the Cold Storage Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Cold Storageindustry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Cold Storage industry to benefit clients and increase the market sector. In recent years, the Cold Storage industry has offered some of the most significant advantages to medicine. Major players in the Cold Storage Market, including VersaCold Logistics Services (Canada), Congebac Inc. (Canada), NewCold (Netherlands), Snowman Logistics Pvt Ltd (India), Wabash National Corporation (US), Cloverleaf Cold Storage (US) and others, are attempting to increase market demand by investing in research and development operations.
Americold Realty Trust, Inc. is a temperature-controlled warehouse and transportation corporation headquartered in Atlanta, Georgia. It is in the business of modern commercialised temperature-controlled warehousing for perishable commodities storage, which is one type of food preservation. The history of Americold began in the early twentieth century, around the time of the first ice and coal enterprises. Atlanta Ice and Coal Company, Atlanta City Brewing Company (later known as Atlanta Brewing and Ice Company,) Versacold, Munford, Jackson Atlantic, United Refrigerated Services, Atlas Cold Storage, and others merged to form Americold. In January 2020, Americold Logistics finalised the acquisition of Nova Cold Logistics in order to develop and enhance its position in Canada.
Bay Grove, LLC owns Lineage Logistics, an international warehousing and logistics management company, as well as an industrial real estate investment trust (REIT). When it first entered foreign markets in 2017, it quickly grew to become the world's largest refrigerated warehousing company, acquiring 72 additional cold-chain storage companies by 2021 and handling more than 8% of the food supply. Lineage employs about 17,000 people in 15 countries, including North America, South America, Europe, Asia, Australia, and New Zealand. In September 2022, Lineage Logistics LLC purchased Grupo Fuentes, a major transport and cold storage facility operator in Spain. Grupo Fuentes is a market leader, with a fleet of 500 vehicles and trailers, six logistics centres, a cold storage warehouse, and value-added services to support those facilities.
In May 2021, Vertical Cold Storage introduces a customer-centric business approach to increase performance and reduce waste. Vertical Cold Storage, along with others, is constructing initial cold storage facilities in Nebraska and Kansas.
Cold Storage Market Highlights:
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